Bankruptcy: the mere mention of the word can send a cold shiver down some people’s spines. Most of us probably immediately jump to poor conclusions. However, the term bankruptcy does not have to be viewed in a negative light all the time. Here are six reasons why.
While different people experience situations in various ways, many people are known to feel as though a weight has been lifted when their bankruptcy is finally confirmed. Financial anxiety can be crippling, with people scared, depressed and paranoid about the circumstances they find themselves in. Alleviating that anxiety, even if this route was not the initial one they wanted to go down, can be a huge blessing.
Determination is a fantastic trait in many situations. However, being so pig-headed that you keep trying to clear your debt whilst actually accumulating more is when you know you need to stop and take stock of what is happening. Filing for bankruptcy could prevent your financial standing from deteriorating further. Furthermore, it can help you to realise that enough is enough and all the wasted energy could be put to better use.
Although the bankruptcy process requires your involvement, as with most finance-related paperwork, it is hefty in size and challenging terminology. Many people are put off the thought of doing anything serious with relation to their money as they are concerned about how much paperwork they will be required to complete. When filing for bankruptcy, you appoint an attorney, such as one from Chapter 13 Bankruptcy Lawyers, who will do the paperwork and legal stuff for you. Of course, they will be experienced in this, so the weight of this can be lifted off your shoulders, too.
The excessive knocking on the door, the not taking no for an answer, the lack of concern about whether it’s convenient for you are all things associated with bailiffs. As mentioned earlier, anxiety linked to finances is common and the worry about bailiffs arriving to rip what few possessions you have remaining from your grips can be overwhelming. Bankruptcy can stop the bailiffs from coming and therefore your worries could end, too.
Depending on the type of bankruptcy you are awarded, some or most of your debts will be written off. Although without bankruptcy, you can often reduce the amount you pay back each month, there is only so long you can go before they are demanding the rest to be paid off sooner. With certain debts being written off, you are guaranteed that they will not be back looking for the remainder of their money.
While your credit score will undoubtedly be impacted by bankruptcy, it is not a long-term thing. There are ways in which you can rebuild your credit and doing so is far from impossible.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.